Economic Roundup: June 21, 2010

 

 In the News https://www.wjbradley.com/email/portal-email/images/econ-rule.gif

Consumer prices for May were down, but they had been up for the past 12 months, according to the Bureau of Labor Statistics. The consumer price index for all urban consumers (CPI-U) dropped 0.2 percent in May on a seasonally adjusted basis, but over the last 12 months the index increased 2 percent before seasonal adjustment.
 
For the second month in a row, declines in energy prices were the main driver in the CPI-U's drop. The Bureau reported that its index for energy decreased 2.9 percent in May, offsetting a slight increase in the index for all items less food and energy. Gasoline decreases accounted for most of the drop, although all the major energy indexes declined.
 
Given unemployment at close to 10 percent, the economy can't sustain much in the way of inflation, but experts noted that an inflation less recovery means the economy will not expand at a very inspiring rate.
 
In any case, the Fed will most likely wait until 2012 before it raises interest rates, the Federal Reserve Bank of San Francisco reported in an "Economic Letter" it released last Monday.
 
The producer price index for finished goods dropped by 0.3 percent in May (seasonally adjusted), the Bureau of Labor Statistics reported last week. This decline followed a 0.1 percent drop for April and a 0.7 percent increase in March.
 
Meanwhile, permits for privately owned homes dipped to a seasonally adjusted annual rate of 574,000, which was 5.9 percent below April's revised rate of 610,000, the Census Bureau reported last week. Permits for single-family homes in May were at a rate of 438,000, a whopping 9.9 percent below April's revised figure of 486,000.
 
Starts on construction of private housing units in May dropped to a seasonally adjusted annual rate of 593,000, which was 10 percent below the revised April estimate of 659,000. Starts on single-family homes in May were at a rate of 468,000, 17.2 percent below April's revised rate of 565,000 units.
 
This week, watch for news reports covering existing home sales (June 22) from the National Association of REALTORS® new home sales (June 23) and orders of durable goods (June 24) from the Census Bureau; consumer sentiment (June 25) from the University of Michigan; and the gross domestic product (June 25) from the Bureau of Economic Analysis.
 

 

 

Equal Housing Lender. 2010 W.J. Bradley Mortgage Capital Corp., 201 Columbine Street Suite 300, Denver, CO 80206. Phone #303-825-5670. Trade/service marks are the property of W.J. Bradley Mortgage Capital Corp. This is not a commitment to lend. Restrictions apply. All rights reserved. Some products may not be available in all states.

AZ License # BK-0903998; Licensed by the Department of Corporations under the California Residential Mortgage Lending Act RML# 4131002; To check the license status of your CO Mortgage Broker, visit www.dora.state.co.us/real-estate/index.htm; Florida Mortgage Lender license #ML.100000098; Georgia Residential Mortgage Licensee, License No. 20233; ID Mortgage Broker License No. MBL-2803; IL Residential Mortgage Licensee – License #MB.6760738, 201 Columbine Street, Suite 300, Denver, CO 80206; MI First Mortgage License No. FL0011392; Mississippi Mortgage Lender License #4298/2009; MN Residential Mortgage Originator License No. 20447094; MO Residential Mortgage Loan Broker License #10-1841, 1065 Executive Parkway, Suite 205, Creve Coeur, MO 63141; NV Mortgage Banker License No. 2061; NV Mortgage Broker License No. 504; NM Mortgage Loan Company and Loan Broker Act Reg. No. 01856; OK Mortgage Broker- License No. MB001365; OR Mortgage Lender License No. ML-776; TN Mortgage Company Registration Certificate No. 3629; TX Mortgage Banker Reg. No. 74182; UT Mortgage Lender Company License No. 5495659-MLCO; Vermont Broker License #0995MB; Vermont Lender License #6141; WA Consumer Loan License No. 520-CL-42624; Wisconsin Mortgage Banker License No. 699991.

 


 

Comments